The delay in the construction of the high-speed railway connecting three airports has prompted U-Tapao International Aviation Company (UTA) to prepare for negotiations with the Eastern Economic Corridor (EEC) to request a relaxation of certain requirements for expanding U-Tapao Airport. This need arises from concerns that the absence of mass transit will impact passenger numbers.
Puttipong Prasarttong-Osoth, president of Bangkok Airways and director of UTA, announced that UTA intends to draft an alternative plan to propose to the EEC office for approval. The Don Mueang-Suvarnabhumi-U-Tapao high-speed railway is not anticipated to commence operations by mid-2025, which would mark five years since the construction contract began.
“We remain committed to advancing our key projects within the EEC, including the expansion of U-Tapao Airport and the airport city initiative. However, we may need to adjust certain projections, particularly regarding annual passenger traffic and revenue, if the high-speed railway is not in place to facilitate traveler movement,” stated Mr. Puttipong.
During the preparation phase, UTA invested 4 billion baht and will require an additional 15 billion baht to complete the first phase of the airport expansion. Once phase one is finished, the airport is expected to accommodate 8-10 million passengers annually, with each construction phase estimated to take five years.
According to the master plan, the company aims to progressively increase airport capacity over the next 50 years to support up to 60 million passengers per year. Mr. Puttipong mentioned that the company is reassessing passenger traffic forecasts in case the high-speed railway project is not completed in time for the airport expansion; however, the expected downgrade should not exceed 50%.
This revised forecast is anticipated to be finalized in the first quarter of next year, setting the stage for discussions with the EEC in the first half of 2025. UTA plans to request approval to begin construction without waiting for the railway project, as the 220-kilometer high-speed railway was initially a prerequisite for UTA to proceed with its development.
In addition, the airport city initiative is intended to boost traffic, with plans to establish partnerships with various companies for co-investment opportunities, including hotels, exhibition centers, and potentially a Formula One circuit to attract large crowds to the area, as noted by Mr. Puttipong.
Regarding Bangkok Airways, he reported expectations of serving 4.5 million passengers this year through 48,000 flights, generating 17.8 billion baht in ticket sales. The average airfare is estimated to rise to 4,000 baht per flight, up from an average of 3,900 baht over the past nine months.
However, challenges persist in increasing the average load factor from 82% to 85% and acquiring additional aircraft due to a global supply shortage. “We have temporarily added two aircraft to our fleet through a wet lease arrangement, which will be operated by foreign pilots exclusively for international flights, in accordance with labor laws permitting foreign pilots on those routes,” he explained.
